President Biden Announces 100% Tariffs on Chinese EVs

President Biden Announces 100% Tariffs on Chinese EVs

Lina Chen
3 min read

President Biden Introduces New Tariffs on Chinese Goods to Protect US Auto Industry

In a strategic move to safeguard the US auto industry, President Joe Biden has announced imposing new tariffs on Chinese goods amounting to $18 billion. Notably, this includes a hefty 100% tax on Chinese-made electric vehicles (EVs). The decision was made amidst rising concerns about a potential influx of affordable Chinese EVs disrupting the US market. Additionally, the tariffs will also encompass lithium batteries, solar cells, and semiconductors, thus intensifying the existing tensions between these two economic superpowers. The escalation in tariffs on Chinese EVs, elevated from 25% to 100%, is perceived as a significant relief for the US auto industry, which has been wary of competing with Chinese companies selling EVs at notably lower prices. It is imperative to note that Tesla's competitors, particularly those like BYD, have been exploring options to venture into exports while facing heightened competition within China, with some contemplating the establishment of production facilities in Mexico.

Key Takeaways

  • President Biden implements new tariffs on $18 billion worth of Chinese goods, inclusive of a 100% tax on Chinese-manufactured electric vehicles.
  • The newly imposed tariffs also extend to lithium batteries, solar cells, and semiconductors, potentially aggravating the tensions between the US and China.
  • The surge in tariffs on Chinese EVs from 25% to 100% is designed to shield the US auto industry from the threat posed by inexpensive Chinese vehicles.
  • Chinese automotive companies such as BYD have been strategizing to export affordable EVs to other nations, prompting apprehension among US policymakers.
  • These new tariffs do not reach the extremities proposed by Donald Trump, who had suggested a 60% tax on all imports from China.


The fresh imposition of tariffs by President Biden on Chinese goods, particularly the substantial 100% tax on EVs, is a deliberate effort to fortify the US auto industry against the influx of budget-friendly Chinese imports. While this maneuver is poised to provide a measure of relief to US automakers, it has the potential to catalyze heightened tensions with China, resulting in ripple effects on sectors such as solar cell, semiconductor, and lithium battery manufacturing entities. Indirectly, countries like Mexico may witness repercussions if Chinese EV manufacturers opt to shift their production operations to evade the impact of tariffs. In the immediate aftermath, US consumers might encounter inflated vehicle prices, while in the long haul, this decision could instigate a looming trade war between these economic powerhouses. The strategic realignments prompted by the protectionist approach diverge from Donald Trump's proposed 60% tariff on all Chinese imports, marking a discernible shift in US trade policy.

Did You Know?

  • Electric Vehicles (EVs) - EVs are vehicles powered by rechargeable batteries and run on electricity instead of traditional fuels like gasoline or diesel. The surge in tariffs on Chinese-made EVs aims to shield the US auto industry from the competition posed by more economical Chinese alternatives, thereby catering to sustainability and economic interests.
  • Lithium Batteries - These batteries, which are rechargeable and extensively utilized in portable electronics, electric vehicles, and renewable energy systems, consist of lithium ions that facilitate the movement between the anode and cathode during the charging and discharging processes. The incremented tariffs on Chinese lithium batteries may elicit an upswing in the costs of electric vehicles and renewable energy systems in the US.
  • Semiconductors - Prevalently composed of silicon, semiconductors are pivotal components with electrical conductivity falling between that of a conductor and an insulator. They are integral to a broad spectrum of electronic devices, encompassing computers, smartphones, and automobiles. The amplified tariffs on Chinese semiconductors have the potential to trigger an upsurge in the costs of electronic devices and vehicles in the US, thereby exerting an impact on the technology and automotive sectors.

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